COP-26 Inc. is a company that finds alternative uses of waste. The company's statement of financial position on April 30 is as follows:

The company is in the process of preparing budget information for May. Several budget items have already been prepared, as follows: a. Sales are budgeted at $200,000 for May. Of these sales. $60,000 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder are collected in the following month. All the April 30 receivables will be collected in May. b. Purchases of inventory are expected to total $120,000 during May. These purchases will all be on account. 40% of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All the April 30 accounts payable to suppliers will be paid during May. Assets Cash $ 9,000 Accounts Receivable 54,000 Inventory 30,000 Current Assets 93,000 Building (net of depreciation) 77,000 Equipment (net of depreciation) 130,000 207,000 Total Assets $ 300,000 Liabilities Accounts Payable $ 63,000 Note Payable 14,500 $ 77,500 Shareholders' Equity Common Shares $ 180,000 Retained Earnings 42,500 $ 222,500 Total Liabilities and Shareholders' Equity $ 300,000 COP- 26 Inc. Statement of Financial Position April 30, 2021 3 | P a g e c. The May 31 inventory balance is budgeted at $40,000 d. Operating expenses for May are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (all of the interest relates to May.) f. New digestor equipment costing $6,500 will be purchased in for cash during May. g. During May, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. The controller just sat down and realizes the task at hand. She knew she will be doing the following statements for the budget, a cash budget for May. In addition, she knows she must prepare schedules showing budgeted cash receipts from sales and budgeted cash payments for inventory purchases. Once she completed that she needs to prepare a statement of retained earnings and a statement of financial position as of May 31.